2023-05-17 20:55:56
Oil prices rose as investors flocked to risky assets amid optimism regarding the debt ceiling negotiations in the United States, and they largely ignored a bearish report regarding the country’s oil inventories.
West Texas Intermediate (WTI) crude oil prices stabilized above $72 a barrel on Wednesday due to an improvement in risk appetite in general in the markets, driven by hopes that an agreement might be reached to raise the spending cap for the US government.
Some of these gains were negatively affected by the issuance of a report revealing that US inventories rose by more than 5 million barrels during the past week, which is the largest increase in inventories since January.
What is the debt ceiling and will the United States raise it?
“Today’s trading is a bit of proof that traders have put fundamental indices behind their backs,” said Rebekah Babin, Senior Energy Trader at CIBC Private Wealth. “The numbers are disappointing – if not downright bearish and pessimistic. However, crude prices held firm, as risk appetite forms the overall trading environment.
Oil prices fell by 9.4% since the beginning of this year due to the negative impact on the outlook as a result of the slower-than-expected recovery of the Chinese economy, the aggressive monetary austerity campaign pursued by the US Federal Reserve, and investor concerns regarding the problem of the debt ceiling in the United States.
Nevertheless, US retail sales rose in April, a sign that consumer spending in the world’s largest economy is holding its own in the face of economic challenges.
1684388691
#Oil #prices #rising #driven #risk #appetite